1 By William Flood of. 2 While the sales aspect of the business is fulfilling, enjoyable and...
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Transcript of 1 By William Flood of. 2 While the sales aspect of the business is fulfilling, enjoyable and...
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Enterprise IrelandNew Frontiers Program Phase1Week 6 PresentationAIT Group
WF AviationMullingar Airport
MilltownpassMullingar
Co. WestmeathIreland
www.wfaviation.com
By William Flood of
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What do these guys do?
WF Aviation is an aviation business based in Mullingar Airfield that offers: a) Aircraft Sales from own stockb) Aircraft Brokerage for owners looking to sellc) As Removed aircraft parts from our own aircraft
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While the sales aspect of the business is fulfilling, enjoyable and profitable the business has recently diversified into aircraft parts sales. The parts business is simple, and one of immense potential for profit a) Take an entire aircraftb) Break it down into every economically viable componentc) Clean, catalogue, photograph, list and sell every item at a healthy profitd) Repeat….
Divide & Conquer
What are they looking for funding for?
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Parts make people happy…. Even babies who love to play in the boxes
Show me how you do it?
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Aircraft are old. Average age of aircraft on US register is 43 years old
Aircraft are not supported by the OEM. Long lead time on parts and sky high prices
Aircraft are constantly being damaged and require repair. Pilots of all skill levels can bend metal
Aircraft parts are shopped for by part number allowing simple like for like price comparison
Europe has high fuel prices that ground aircraft perfectly viable elsewhere
The bulk of the competition is located in the US who have disadvantages in shipping & import taxes
Is there a market opening for this?
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360,000 Aircraft Worldwide in active service
14,700 Aircraft in UK in active service
800 Aircraft in Ireland in active service
Average of 2,000 new aircraft sold each year Worldwide
Average age for the pilot/aircraft owner is 45 years old
General aviation is defined as all aviation other than military and scheduled commercial airlines
What is General Aviation, and what size is the market?
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End users are:
Aircraft owners Aircraft engineers Aircraft maintenance organisations Aircraft component repair organisations Aircraft home-builders
Benefits to end users:
Virtually no lead time on parts 40% saving on new part prices from OEM Supply of parts no longer available from OEM European based owners pay less for shipping
Who are your potential customers and why would they buy from you?
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William Flood Aged 33, started flying at 14, with 19 years exposure to General Aviation. Degree from UCD in Commerce (Banking & Finance) and Certificate in Auctioneering & Estate Agency. Passion for aviation with 1,500 flight hours and at advanced stages of training for FAA Commercial/Multi/Instrument licence privileges.
David CumminsAged 20, studied Aircraft Systems in Carlow IT. Completed 50% of exams for B1 Aircraft Engineer licence. Worked at 4 of the General Aviation maintenance firms in Ireland.
Have you guys any training or experience in this?
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The promoter William Flood has wide and varied start up experience, and a good track record for not being beaten.
1. Stock Market Momentum Trading2. Fixed Odds Arbitrage Betting Scheme3. Vending Machine Business4. Dubai Property Resale5. Development Land Rezoning6. Skydiving Business7. Go-Karting Business8. Aircraft Sales/Aircraft Parts Sales
Fall down seven times, get up eight!
Have you guys any track record?
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The size of the market is 360,000 General Aviation aircraft all in need of parts.
There are over 110 million aircraft parts listed on Partsbase.com
There are over 190,000 people a month actively seeking aircraft parts on Partsbase.com
On Ebay alone there are 12,000 parts a month sold in the Aircraft Parts Category.
Industry multiple is a 10x markup on the cost price of the as removed part.
Average industry turn on stock in 4 months
Market is worldwide. All publications are read globally. English is the standard language of aviation. All parts are sold by part number. All websites are globally orientated. This is a worldwide business.
Have you done any market research ?
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Name Location Number of aircraft
Dodson International USA 3000 aircraft dismantledWhite Industries USA 2800 aircraft dismantledGlobal Aircraft USA 800 aircraft dismantledNalson Aviation UK 80 aircraft dismantledSkycraft UK 60 aircraft dismantledWF Aviation IE 4 aircraft dismantled
There must be someone else doing this already?
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It’s all very well in practice but does it work in theory?
Have you done any figures to prove your assumptions?
YR 0 YR 1 YR 2 YR 3 Total
Aircraft 15 30 50 60 155
Parts Per Aircraft 800 1.000 1.200 1.400
# of Parts Added to Inventory 12.000 30.000 60.000 84.000 186.000
Avg Value of Item of Inventory € 150 € 200 € 225 € 240 € 27.900.000 Sales € 150.000,00 € 600.000,00 € 1.350.000,00 € 2.016.000,00 € 4.116.000,00
Cost of Sales € 60.000,00 € 240.000,00 € 540.000,00 € 806.400,00 € 1.646.400,00
Gross Profit € 90.000,00 € 360.000,00 € 810.000,00 € 1.209.600,00 € 2.469.600,00
Admin Overhead € 15.000,00 € 60.000,00 € 135.000,00 € 201.600,00 € 411.600,00
Net Profit € 75.000,00 € 300.000,00 € 675.000,00 € 1.008.000,00 € 2.058.000,00
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What have you guys achieved to date?
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"If you think and feel positively, you will attract positive events and circumstances." That is a secret, so please only tell one person at a time.
Over the next three years we plan:
to dismantle 152 aircraft
to have 12,000 sq of paid for floor space
to have 10 excellent people on our team
to have one very streamlined process
to retain 90% or more of the equity
to have zero net debt = Total debt – cash on hand
Medium term where is this going?
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Over the next 6 months we plan:
to get the services of an excellent book keeper
to get compliance on all environmental issues
to raise €200K in equity funding from known source
to get a slick eBay Store design/template listing
to expand our tooling to deal with bigger twin engine A/C
….obviously all helped by achieving a place on New Frontiers Phase 2!!
Short Term what is the plan?
Over and Out
Any questions guys?
WF AviationMullingar AirportMilltownpassMullingarCo. WestmeathIrelandwww.wfaviation.com